Amazon launches UK grocery web site

LONDON, July 7 (BestGrowthStock) – U.S. online retailer Amazon.com
Inc (AMZN.O: ) has launched an Internet grocery service in
Britain, it said on Thursday, joining a fast-growing but
competitive market.

The move poses a challenge to supermarket groups Tesco
(TSCO.L: ), Wal-Mart’s Asda (WMT.N: ) and J Sainsbury (SBRY.L: ), as
well as online specialist Ocado, though Amazon will not offer
the one to two-hour delivery slots provided by these operators.

It also comes a day after Ocado said it was aiming for a
heady valuation of over 1 billion pounds ($1.5 billion) in an
initial public offering later this month. [ID:nLDE66417V]

Online sales of groceries are booming in Britain and,
although they account for only a small percentage of the overall
market, grocery specialists IGD forecast they will almost double
to 7.2 billion pounds ($10.9 billion) by 2014.

Amazon, which already sells groceries online in the United
States and recently launched in Germany, said it would sell over
22,000 products from brands like Kraft (KFT.N: ), Pepsi (PEP.N: )
and Procter & Gamble (PG.N: ).

An undisclosed number of the products will be provided by
third-party members of its Amazon Marketplace.

The service will offer Amazon.co.uk’s full range of delivery
options, which include free delivery for an annual membership
fee of 49 pounds, and next day delivery.

But it will not offer the one or two-hour delivery time
slots provided by Britain’s biggest oline grocers, and products
from third parties will be sent separately, a spokesman said.
(Reporting by Mark Potter; Editing by Hans Peters)
($1=.6581 Pound)

Amazon launches UK grocery web site